Editing Starling Bank
The edit can be undone. Please check the comparison below to verify that this is what you want to do, and then publish the changes below to finish undoing the edit.
| Latest revision | Your text | ||
| Line 239: | Line 239: | ||
* '''Cybersecurity''' - With digital banks operating completely online, they are vulnerable to fraud and cyber attacks. Fraud complaints against Starling, Revolut and Monzo have increased at a rate higher than customer growth, and higher than complaints at traditional banks. A neobank with poor security and customer protections would conceivably lose the public's trust and enormous business and revenue. Challenges such as account takeovers, chargeback fraud and loan fraud are all examples of criminal activity that digital banks are at risk from. | * '''Cybersecurity''' - With digital banks operating completely online, they are vulnerable to fraud and cyber attacks. Fraud complaints against Starling, Revolut and Monzo have increased at a rate higher than customer growth, and higher than complaints at traditional banks. A neobank with poor security and customer protections would conceivably lose the public's trust and enormous business and revenue. Challenges such as account takeovers, chargeback fraud and loan fraud are all examples of criminal activity that digital banks are at risk from. | ||
* '''Shifting banking habits''' - As a result of the pandemic, there has been a massive surge in online banking amongst traditional banks slowing down the leakage of consumers. While traditional banks offer services both in physical branches and now digitally, consumers will be less inclined to shift to neobanks unless they have a unique differentiating factor. | * '''Shifting banking habits''' - As a result of the pandemic, there has been a massive surge in online banking amongst traditional banks slowing down the leakage of consumers. While traditional banks offer services both in physical branches and now digitally, consumers will be less inclined to shift to neobanks unless they have a unique differentiating factor. | ||
* '''Lack of knowledge among rural customers''' | * '''Lack of knowledge among rural customers'''Lack of knowledge among rural customers is indeed a key challenge in the expansion of neobanking. Despite the opportunities for greater financial inclusion, a variety of factors can create barriers for rural customers: | ||
*# '''Digital Literacy:''' Many rural customers may not have the necessary digital skills to use neobanking services. They may not be familiar with how to use mobile apps, understand online security practices, or navigate digital banking platforms. | *# '''Digital Literacy:''' Many rural customers may not have the necessary digital skills to use neobanking services. They may not be familiar with how to use mobile apps, understand online security practices, or navigate digital banking platforms. | ||
*# '''Access to Technology:''' Even if they are digitally literate, some rural customers may not have access to the necessary technology. They might not own a smartphone or have a reliable internet connection, both of which are crucial for accessing neobanking services. | *# '''Access to Technology:''' Even if they are digitally literate, some rural customers may not have access to the necessary technology. They might not own a smartphone or have a reliable internet connection, both of which are crucial for accessing neobanking services. | ||